Bayley Bullish on 2018 China Pricing

With supply down in China for 2018, Royal Caribbean International showed confidence in the emerging market on its Q4 2017 earnings call.

"Capacity is down for the industry in China overall which I think is the first year in a number of years the capacity is down," said Michael Bayley, president and CEO, Royal Caribbean International.

"Capacity for Royal is down because we moved Mariner slightly earlier than we had originally planned to put it in the short (Caribbean) market. We are not seeing pricing (decrease) for our product in China. In fact our current booked position, contracted cash down, is significantly stronger than the previous year," he continued.

The company will have a reduced China program this year, with the Quantum of the Seas year-round, supported by seasonal deployments from the Ovation of the Seas and Voyager of the Seas.

"But overall for Royal in 2018 we are in a good booked position (in China) and we are feeling pretty good about where market is going, of course it's China. So, every year China is a gift that gives, so we are always aware of that but it's currently looking quite good in China," Bayley noted.